More Cases Emerge Over Bank-Developer Link

Two more Bank of Scotland Ireland customers have raised concerns about their dealings with a former lending manager at the bank who had business links to a property developer.

Yesterday it emerged that a second and a third customer have initiated legal proceedings against the bank.

As with the first customer, they were also introduced to the same property developer by the same bank official.

The two latest customers are reported to have lost €300,000 through dealings with the recommended property developer.


The first customer to raise concerns - in relation to his dealing with the bank official in 2003 - is also taking legal action against the developer. He claimed that after receiving a loan from the bank, the lending manager then offered to set up a meeting with a property developer to discuss investment possibilities.

The developer said that if the customer invested €400,000 he could easily double his money within a year.

However, after three years the customer claims he has only been repaid slightly over €70,000, leaving him with a substantial debt to the bank.

It emerged last week that the lending manager had links to the property developer, and further investigation into land registry documents revealed they jointly owned property.

It has also been revealed that the property developer is being investigated by the Garda Bureau of Fraud Investigation.

Bank of Scotland Ireland has said that it can only confirm it is facing legal proceedings but cannot comment further.

(VB)